What can make matters worse from a financial standpoint is when the loss of a job, a divorce or some substantial expense compounds medical bill debt, making it extremely challenging for borrowers to make payments on their debt and to cover their monthly living costs.
Despite the financial and emotional stress that may come with medical debt, the good news is that borrowers do have some options for debt relief, with one of these being filing for Chapter 7 bankruptcy. In fact, by filing for Chapter 7 bankruptcy, borrowers can effectively get their medical (and some other) debt discharged, meaning that this debt will be “forgiven.”
Discharging Medical Debt through Chapter 7 Bankruptcy
Medical debt is considered to be unsecured debt, which means that borrowers’ property (i.e., collateral) is not associated with this type of debt. As a result, when borrowers default on payments, creditors seeking payment on this debt can try to sue borrowers to force payment by attempting to get their wages garnished.